Arbeitspapier
The spending and debt response to minimum wage hikes
Following a minimum wage hike, spending increases more than income, and thus debt rises, in households with minimum wage workers. The size, as well as the timing, persistence, composition, and distribution of the spending response is inconsistent with the basic certainty equivalent life cycle model. However, the response is consistent with a model where households can borrow against part of the value of their durable goods.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2007-23
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Aaronson, Daniel
Agarwal, Sumit
French, Eric
- Event
-
Veröffentlichung
- (who)
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Federal Reserve Bank of Chicago
- (where)
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Chicago, IL
- (when)
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2008
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Aaronson, Daniel
- Agarwal, Sumit
- French, Eric
- Federal Reserve Bank of Chicago
Time of origin
- 2008
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